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CACI International (CACI) Beats Q4 Earnings, Offers Guidance

CACI InternationalCACI reported better-than-expected fourth-quarter fiscal 2017 results with healthy year-over-year increase in both earnings and revenues. The company benefited from increased material purchases, accelerated contract modifications and admirable contract performance.

GAAP earnings for the reported quarter were $44.2 million or $1.76 per share compared with $43.6 million or $1.75 per share in the prior-year quarter. GAAP earnings per share comfortably beat the Zacks Consensus Estimate of $1.64. The year-over-year increase in earnings was primarily driven by a significant improvement in revenues.

Quarterly revenues were $1,137.4 million compared with $1,113.9 million in the year-ago quarter, driven primarily by increase in revenues from the Department of Defense. The reported revenues exceeded the Zacks Consensus Estimate of $1,088 million.

For fiscal 2017, the company reported earnings of $163.7 million or $6.53 per share compared with $142.8 million or $5.76 per share in the prior year. Revenues for the year were $4,354.6 million compared with $3,744.1 million in the year-ago period, due to the National Security Solutions acquisition.

Other Significant Details

Contract awards in the reported quarter were $1.1 billion and $6 billion for the year, of which approximately 60% accounted for new businesses for CACI International. Contract funding orders were $1.1 billion in the quarter and $4.1 billion for the year. Total backlog as of Jun 30, 2017, increased 1.9% to $11.2 billion from $11.0 billion at the end of fiscal 2016. Funded backlog in Jun 30, 2017 was $1.9 billion.

In terms of customer mix, the Department of Defense accounted for about 66.1% of the total revenue in the reported quarter. Federal Civilian Agencies contributed about 27.9% while Commercial and other customers accounted for 6% of revenues.

Balance Sheet and Cash Flow

At the fiscal year end, CACI International had cash and cash equivalents of $66.5 million with long-term debt (net of current portion) of $1,177.6 million.

Net cash from operations for fiscal 2017 was $281.3 million compared with $242.6 million a year ago.

CACI International, Inc. Price, Consensus and EPS Surprise

CACI International, Inc. Price, Consensus and EPS Surprise | CACI International, Inc. Quote

Guidance

CACI International provided guidance for fiscal 2018 on improved growth dynamics. Revenues are expected in the range of $4,350-$4,500 million. Net income is expected in the range of $165-$173 million, resulting in earnings per share of $6.52-$6.84.

Moving ahead, CACI International expects to diligently focus on its operating plans to reward shareholders with attractive risk-adjusted returns. The company remains confident about its competitive position and continued ability to meet customer requirements through the delivery of innovative, affordable solutions and services.

CACI International currently carries a Zacks Rank #2 (Buy). Other stocks in the industry worth a glance include, LogMeIn, Inc. LOGM , Syntel, Inc. SYNT and ManTech International Corporation MANT . All three stocks carry the same Zacks Rank as CACI International. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

LogMeIn has long-term earnings growth expectations of 17.5% and is currently trading at a forward P/E of 37.06x.

Syntel has long-term earnings growth expectations of 9.3% and is currently trading at a forward P/E of 10.83x.

ManTech has long-term earnings growth expectations of 8% and is currently trading at a forward P/E of 26.02x.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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